Drilling Innovations Inc. produces specialized cutting heads used by companies that drill for oil and natural gas. The company recently implemented an ABC system for three of its products and is interested in evaluating its effectiveness before converting to an ABC system for all of its products. To perform this evaluation the company has compiled data for the three products using both the traditional system and the new ABC system. The traditional system uses a single driver (machine hours). The ABC system Page 248

In order to determine the optimal sales mix for a company, one should evaluate the contribution margin per unit of whatever the scarce resource is   True or Faise

When evaluating if a company should accept a new contract to produce more    product it should:  Evaluate all possible fixed cost of accepting the contract. Evaluate the propose contract using a contribution margin approach. Accept the new contract if the sales price for the product is equal to or higher than the current sale price. Accept the new contract if fixed costs will remain the same.

Cost-volume-profit (CVP) analysis for revenue planning determines: The desired profit level of a firm. Both revenue maximization and cost minimization. The costs associated with a certain level of revenue. The max amount of revenue a firm can receive. The revenue required to achieve a desired profit level.

What is downsizing? A. An integrated approach configuring processes, products, and people to match costs to the activities that need to be performed for operating effectively and efficiently in the present and future. B. A comparison of the quantity of output produced with the quantity of an individual input used. C. The amount of productive capacity available over and above the productive capacity employed to meet customer demand in the current period. D. An organization's ability to achieve lower costs relative to competitors through productivity and efficiency improvements, elimination of waste, and tight cost control.